Who needs
estate planning?
Regardless of the size of your estate, every person
should have a will, a durable power of attorney, and a
health care proxy. And, if you have minor children, it
essential that make arrangements to have a guardian
selected should you die or become incapacitated. More
sophisticated estate planning is advisable if any of the
following situations apply:
Your estate
exceeds the estate tax exemption amount (which stands at
$1,000,000 for the years 2002 and 2003). Remember that
the life insurance polices you own are included for tax
purposes in computing the size of your estate! A single
life insurance policy can easily swell your estate to
the point where hundreds of thousands of dollars in
taxes are owed.
You or your
spoouse are not citizens of the United States.
Citizenship has an enormous impact on estate taxation
issues.
You own
property in a foreign country.
You wish to
hold property in trust for your minor children until
they are older.
You have
children or desired beneficiaries who have special needs
(such as children with physical disabilities).
You own a
closely held business.
You own real
estate in more than one state.
If any of
these situations apply, a simple will may not suffice.
The attorneys at Hargrove & Rea, P.C. will be more than
happy to sit down with you and answer any questions you
may have.
I already have a Will. Do I need to have it reviewed?
Life is change. As your circumstances change, it is
prudent to review your estate planning to insure that it
will still effectuate your desires. This is especially
true if your Will was written several years ago - before
some of the significant developments that have occurred
in the laws affecting estate taxation and probate. You
should contact your lawyer to review your estate plan if
any of the following situations apply:
You wish to
make specific gifts to people not presently included in
your estate plan.
You wish to
remove people from your estate plan.
You wish to
change the amounts that you leave to people named in
your estate plan.
The value of
your estate has changed significantly.
A new child,
grandchild, or other person you may wish to include in
your estate plan has been born since the time of the
execution of your estate plan.
Anyone named
in your estate plan has been divorced or is experiencing
marital difficulties.
You wish to
name a different person than the person you originally
named in your estate plan as executor, guardian or
trustee.
If any of
these situations apply to you, it is advisable to review
your estate plan. In addition, if you are in doubt as to
whether your plans need to be reviewed, it is best to
err on the side of caution and visit an attorney. Making
changes to an estate plan is often a simple task and
typically does not cost very much.
